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Taxation of Branches in Germany
Updated on Thursday 11th January 2018 Rate this article
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Since Germany is a successful economy thanks to its efficient international trade relations, foreign company owners decide very often to open as well a branch in this country. Entrepreneurs don’t need governmental approval for the branch set up, but they need to contact the relevant authorities before effectively starting the business operations. Our specialists in company formation can explain to you what are the financial responsibilities of branches and the taxation rules in Germany.
Germany branch taxation
Even though branches in Germany have no legal personality, before the effective start of the business operations, branches need to be in the evidence of the Commercial Register. The responsibility for the financing of branches remains one of the attributions of the parent company. The business profit obtained by the branch in Germany is going to be taxed at the rate of 15%.
Other transactions which take place between the parent company and the permanent establishment in Germany are not taxed by the German state. One of our experts in company formation in Germany can explain to you when and how a branch needs to fulfil its tax attributions in order to comply with the German law.
Other requirements for branches in Germany
Since branches in Germany are taxed at the rate of 15%, they need to have a tax number so that they can be in the evidence of the local tax authority. Our consultants can help you with details concerning the procedure for the obtaining of the steuernummer (tax number) as well as the process of registration with the Commercial Register.
The tax amounts for the foreign branches established in Germany are the same with those applied to local companies. This shows that the state maintains an equal climate in order to encourage foreign investors to contribute to the local economy. Moreover, deductions can be obtained from the transactions performed between the branch and the parent company.
Feel free to contact our specialists in company registration in Germany for more information concerning taxation issues for branches in Germany.
Meet us in Germany
Marco Rössel is a Partner at Liesegang & Partner and an experienced Attorney at Law. He is specialized in commercial and corporate law and can help you open your company in Germany as fast as possible.
Call us now at +49 69 71 67 2 67 0 to set up an appointment with our company formation experts in Germany. Alternatively you can incorporate your company without traveling to Germany.
As our client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Germany.
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to all clients who need company formation services in Germany.
to all clients who need company formation services in Germany.